The real estate sector has always been considered one of the sectors where investments are safer. The problem is that in recent decades. It has become more difficult for the average investor to do. Barriers to entry have become excessively high as wages have not kept pace with property values. This is due to several factors but today we are not going to go into it.
Real estate tokenization to the rescue!
Surely you have already heard of blockchain and tokenization. What you may not have heard or not been very clear about is how you and everyone around. You can benefit through tokenization and real estate tokenization in particular.
How would you feel if you and everyone you know could start investing in the same real estate as billionaires? Yes even high-end commercial or luxury residential real estate is literally at your fingertips now that tokenization is a reality thanks to Digishares.
What is tokenization?
Tokenization is the process by which a business or an asset is divided into tokens with equal right and value. Using a platform like Digishares anyone can participate in one of the safest investments in the last thousands of years through tokenization.
In our opinion real estate tokenization is one of the best use cases. Tokenization of real estate assets benefits both asset owners and retail and institutional investors.
The main benefits of real estate tokenization for asset owners or real estate developers looking to add additional assets to their portfolio.
Possibility of creating liquidity.
As is known real estate assets are not the most liquid. This means that the value of that asset is locked up and not readily available to be traded or used as cash. Usually in order to get liquidity you would traditionally have to go to a bank and get a mortgage or a loan against the equity of your real estate. Check details about difference between at verschiltussen
This process is long and arduous and often does not provide liquidity quickly enough. With real estate tokenization through a platform like Digishares. The owner of an asset can issue tokens that represent equity, a part of the asset or debt. A loan with a certain percentage of annual return to all token holders. on a prorated basis.
Reduced limitations on raising capital.
Traditional methods of raising capital as mentioned can be difficult and the success rate is lower. Depending on the specific circumstances of the promoter such as their credit rating. The conditions of the operation prepayment assumptions etc.
Ability to attract new investors.
Through real estate tokenization asset owners and real estate developers are able to attract. A new and diverse group of investors from all walks of life from all parts of the world. There is a huge wave of cryptocurrency investors. Who have made outrageous returns in the last 5-10 years who are now interested in putting their profits into some old school assets like digishares. Definitely the most open to investing and acquire on those assets through new school methods.
These new investors can come from anywhere in the world. There are no longer any geographical borders and today there are more millennial investors. Than at any other time in history. Family offices are also showing a lot of interest in investing in real estate tokenization platforms.
With Digishares real estate tokenization makes it possible to digitize and automate many processes. Related to financing and investor management. From allowing shareholder meetings and voting electronically to smart contracts themselves being audited and having the “rules of the game” included and secured in the blockchain.
Depending on the form of investment token holders have a direct claim on the cash flows of the real estate. That has been tokenized and may also realize the corresponding capital gains on their tokens when the property is sold.
The main advantages for the investor who uses real estate tokenization
Digital and secure ownership of your stake in the form of tokens that can be issued transferred registered or stored in a blockchain system.
Investing in real estate security tokens also allows for quick liquidity in a pinch by selling them on a platform like Digishares. If you have invested in a real estate development project you can sell your tokens at any time. If you need to recover the investment money before the project is built. This is not possible if you invest in a real estate development through traditional channels.
There are no geographical limits. With real estate tokenization anyone from anywhere in the world can invest in their dream properties wherever they want. From investing in tourist properties on the beaches of Tulum Mexico to investing in 5-star hotels in central London. Real estate tokenization makes all of these opportunities possible.
Advantages of real estate tokenization
Digishares is your own real estate crowdfunding platform.
Allows you to invest through most currencies (both fiat and crypto).
Uses audited smart contracts for the highest level of security.
Offers instant liquidity through our OTC market (over the counter).
• Electronic signatures.
• Ease and speed of transactions.
• No geographical limits.